Best regional QLD areas for property investment 2024
Looking for the best places to buy an investment property in regional Queensland?
Here, we round up the latest data and expert insights on how regional Queensland property prices tracked over the year and where they could be headed in 2024.
Let’s start with an overview of how the regional Queensland property market performed in 2023.
How was the property market in regional Queensland in 2023?
How was the property market in regional Queensland in 2023?
Leading regional Australia’s price recovery in 2023, the latest figures from CoreLogic reveal regional Queensland property prices are at a record high, gaining +8.0 per cent since their recent trough.
This growth outpaces the recovery in regional NSW (+2.8 per cent), Tasmania (+0.8 per cent) and Victoria (+07. per cent) since their respective troughs, that followed in the wake of pandemic-driven price surges. In Queensland, regional dwelling prices rose +47.6 per cent from the onset of Covid to their May 2022 peak but dropped to -5.4 per cent by January 2023, with CoreLogic recording a median dwelling value of $549,562.
Since climbing back up in March (+0.3 per cent), the regional Queensland market continued to make steady gains, with median dwelling value now at $602,256. As the ABC reports, all of Queensland’s regional centres – excluding the Sunshine Coast and Townsville – are at their peak with prices continuing to rise.
CoreLogic founder Tim Lawless says the rise in housing prices in regional Queensland comes down to affordability following the Covid-era boom around Brisbane and its surrounding areas. “A lot of those more far-flung markets like Cairns or Mackay and the Whitsundays, they’re a lot more affordable,” Tim says. “They didn’t see the same trends as south-east Queensland saw through the pandemic. Most of those markets are showing immediate value well below $500,000.”
Real Estate Institute of Queensland CEO Antonia Mercorella agrees, saying the regional Queensland housing market has emerged as a relatively affordable choice for buyers who, depending on area, could also achieve attractive annual growth.
“Those seeking value for money are finding it in our regional economic powerhouses – Toowoomba and Townsville,” Antonia says. “You’re looking at an annual median house price of $530,000 in Toowoomba and just over $400,000 in Townsville – well below Greater Brisbane’s $760,500 median price point.”
In terms of gain, CoreLogic’s Regional Market Update November 2023 saw Bundaberg claim top spot for highest annual growth in regional Australia, with prices rising +10.8 per cent over the past year, taking median dwelling value to $463,534. Other top performing regional Queensland markets were Rockhampton (+9.8 per cent), Toowoomba (+7.9 per cent), Gold Coast – Tweed Heads (7.3 per cent), Maryborough (+6.2 per cent) and Mackay (+6.1 per cent).
Regional QLD property market predictions 2024
Antonia Mercorella predicts continued price growth into 2024 as a shortage of sales listings, coupled with interstate migration and a tight job market, keep the regional Queensland property market steady.
“Buyers who had hoped a bargain was just around the corner will be sorely disappointed as the shortage of stock is keeping the competition hot,” says Antonia. “Queensland property has shaped up to its age-old reputation as a consistent player, and we expect to see more of the same steady growth as we bring in the new year.”
Domain chief of research and economics Dr Nicola Powell predicts prices will lift across regional markets in 2024 as ongoing high interest rates continue to drive buyers towards more affordable regions. “Stretched affordability and lower borrowing power will continue to place a ceiling on buyers’ capacity to pay for a home,” says Nicola.
In Queensland, the government is set to double the first-home buyer’s grant from January 2024, which Nicola expects will further increase demand. “We’ll likely see strong rates of growth in certain pockets of those affordable markets because of this increased activity from first-home buyers,” Nicola says.
How are property prices in regional QLD expected to change in 2024?
NAB predicts house prices in Queensland will rise +1.3 per cent over the next year and +2 per cent over the next two years.
In its forecast for 2024, Domain predicts house prices in regional Queensland will rise +2 to +5 per cent and unit prices +1 to +2 per cent.
Property investment experts dashdot have made specific price predictions for four regional Queensland areas where they believe prices are set to soar over the next year. Analysing a range of metrics, including local economy, population, planning and housing, dashdot give these Median Sales Price Growth Prediction Forecasts with a confidence rate of +70 per cent:
- Newtown, median sale price $450,000, Median Sales Price Growth Prediction Forecast +10.65 per cent, anticipated median sale price between $483,245 and $513,539 over the next 15 months.
- Gladstone Central, median sale price $340,000, Median Sales Price Growth Prediction Forecast +8.02 per cent, anticipated median sale price between $334,982 and $406,082 over the next 15 months.
- Cannonvale, median sale price $650,000, Median Sales Price Growth Prediction Forecast +12.16 per cent, anticipated median sale price between $694,071 and $768,015 over the next 15 months.
Condon, median sale price $320,000, Median Sales Price Growth Prediction Forecast +12.79 per cent, anticipated median sale price between $350,230 and $372,321 over the next 15 months.
Best suburbs to invest in Queensland: Regional edition
In its Fast 50 shortlist of top investment suburbs for 2024, Smart Property Investment reveals these five Queensland regional areas had the highest 12 month growth in median dwelling price:
- One Mile, median dwelling price $419,000, up +30.9 per cent over the past year.
- Redbank Plains, median dwelling price $510,000, up +29.1 per cent over the past year.
- Avenell Heights, median dwelling price $393,000, up +26.8 per cent over the past year.
- Warwick, median dwelling price $370,000, up +24.8 per cent over the past year.
- Raceview, median dwelling price $490,000, up +24.1 per cent over the past year.
Tipping them as the next investor hotspots, realestate.com identifies these LGAs as receiving Queensland’s largest year-on-year growth in investor enquiries:
- Isaac LGA, +64 per cent year-on-year growth in investor enquiries.
- Livingstone LGA, +47 per cent year-on-year growth in investor enquiries.
- Central Highlands LGA, +46 per cent year-on-year growth in investor enquiries.
- Mackay LGA, +43 per cent year-on-year growth in investor enquiries.
- Gladstone LGA, +38 per cent year-on-year growth in investor enquiries.
Property Tribune includes these five regional Queensland areas in its Australia’s top 20 suburbs for investing in new-build houses:
- Hope Island, potential rental yield +7.6 per cent, vacancy rates +2.1 per cent, typical rent $1,200.
- Andergrove, potential rental yield +7.18 per cent, vacancy rates +1 per cent, typical rent $570.
- Edmonton, potential rental yield +7.04 per cent, vacancy rates +0.9 per cent, typical rent $550.
- Shoal Point, potential rental yield +6.68 per cent, vacancy rates +0.9 per cent, typical rent $520.
- Cannonvale, potential rental yield +6.56 per cent, vacancy rates +0.7 per cent, typical rent $750.
Other regional Queensland investment property hotspots
For investors, Terry Ryder of Hotspotting picks these as the best suburbs to buy in regional Queensland:
|Suburb||Median house price||Median apartment price||Average rental yield||Year-on-|
|Bundaberg South||$350,000||$280,000||+6.4%||+9.73% houses, +6.45 % units|